Auto bailout stalled, GOP seeks UAW concessions
A $14 billion auto industry bailout bill stalled in the Senate on Thursday, and Republicans demanded upfront concessions from the United Auto Workers as the price for support needed for passage.
UAW officials were in talks with key lawmakers, congressional officials said, although it wasn't clear what, if any, givebacks the union was willing to discuss.
The developments unfolded after Senate Republican leader Mitch McConnell of Kentucky joined other GOP lawmakers in announcing his opposition to a White House-backed bill that was approved by the House on Wednesday. He called for an alternative that would reduce the wages and benefits of the Big Three automakers to bring them in line with those paid by Japanese carmakers Nissan, Toyota and Honda.
Sen. Chris Dodd, D-Conn., the Banking Committee chairman, was in closed-door negotiations with Sen. Bob Corker, R-Tenn., the sponsor of that proposal, to see if it could be modified to win the support of Democrats, who count labor unions among their strongest political allies.
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Congressional officials described the maneuvering on condition of anonymity because they were not authorized to disclose the discussions.
A growing number of Republicans and Democrats were turning against the House-passed bill - itself the product of hard-fought negotiations between the Bush White House and congressional Democrats - despite urgent entreaties from both President George W. Bush and President-elect Barack Obama for quick action to spare the economy the added pain of a potential automaker collapse.
The rescue plan would speed emergency short-term loans to cash-starved General Motors Corp. and Chrysler LLC.
Ford Motor Co. would be eligible as well but has said it has enough cash to survive without federal help.
The measure would create a Bush-appointed overseer - a kind of "car czar" - to dole out the money but also with authority to yank it back if the carmakers didn't cut quick deals with their unions and creditors, among others, to restructure.
McConnell said that measure "isn't nearly tough enough."
